One thing PACW has going for it is an excellent net interest margin - it's definitely working against the shorts

they saying that time heals all wounds is certainly true when it comes to banking... over time a 5% net interest margin will help banks like PACW rebuild capital. This net interest margin will slowly help PACW rebuild capital - but the $1 million question is will they rebuild capital sooner than bad loans destroy it???

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PACW LOAN PORTFOLIO:

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Nonowner-occupied residential construction loans $287.5M

Commercial RE Construction: $833M

Commercial RE Mortgage: $2.3B

NPA's: $74M

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MEET West Coast Bancorp (WCBO)

- The worst bank I've seen trading near 1x tangible book.

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Market Cap $176M

(keep this number in mind as you review the dollar value of the risky loans - they dwarf the book value)

You need to be real careful about your comments about banks. Causing a "run" on a bank can be a cause for prosecution by the Feds If you remember, Senator Schumar's comments caused a run on IndeMac which eventually caused the closing of the bank.

Well too be clear I am not looking to cause a run on a bank. Most depositors are secured via FDIC insurance so they have no reason to pull money from any bank.

What I am saying however is that the % of risky loans at these banks vs. bank equity is worse than what I've seen at any of the banks I've looked at... keeping in mind I haven't surveyed the entire banking system... I've included facts above which came right from the banks' own press releases.

If these facts cause a panic then the banks can only blame themselves. Nobody should be pulling money out of a bank because of my non-expert opinion.